Investigation of the Impact of CNC-Technology Adoption on Productivity of Roda Machine Manufacturing Industry
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Date
2023-06
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Addis Ababa University
Abstract
Productivity is basic issue on which a business organization focuses for existence and being competitive in the market and making a profit while satisfying customer requirements. To create profit a business system has to be efficient in optimal uses of input resources to enhance productivity and reduce cost. The production inputs namely labor, materials, energy technological capability with organizational system setups are responsible for productivity among which technological capability is supreme.
Ethiopia has been importing manufacturing machines, since many years ago from different countries of the world. On the other hand there are local machine manufacturing industries which are believed to significantly contribute to economic development through providing machines and import substitution in line with the country’s industrialization policy. Roda machine manufacturing industry is one of Ethiopian machine manufacturing industry. It is established for production of spare parts, molds, dies and machines of agriculture, construction, agro-processing and other manufacturing industries. Molds, dies and machine components production capacity is directly correlated with technological capacity which is association with updated technology adoption decision of the industry. However Roda is equipped with obsolescent machine tools, which are limited to produce mold, die and precious & complex parts to achieve its objective. This constrain with technological capacity impacts productivity and product quality of the industry. Hence the research is focused on investigation of impact of CNC-technology adoption on the productivity of Roda machine manufacturing industry and proposing appropriate improvement solutions.
A structured questionnaire, interview and physical work examination were employed for collecting primary data. Whereas for secondary data review of industry reports, profiles as well as records review were conducted. The questionnaire was distributed to representative sample of 87 drawn from the target population, from which 81 (93%) of them were filled correctly and responded. To analyze and presented the data, bar graphs, tables, fishbone diagrams and vensim software for system modeling and simulation were used. Understanding the benefits of technological capacity for productivity improvement limited and they believed that their source of technology is internally focused. To increase technological capacity of the industry CNC-technology adoption modeling is developed that facilitates productivity improvement.
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Keywords
Productivity, computer numerical control (CNC), Technology, adoption, machine manufacturing industry